LG Electronics enjoys OLED TV boom with record Q1 shipments

South Korea’s LG Electronics Inc. is enjoying the growing popularity of organic light-emitting diode (OLED) TVs, posting a record shipment in the first quarter, as the segment is joining the mainstream in the global market.

According to industry tracker Omdia, LG shipped out 790,200 OLED TVs in the first three months of this year, marking a record quarterly high.

If the trend continues, the Korean home appliance giant is forecast to churn out 3.2 million units by year-end, up 57% from 2.04 million units in 2020. Some analysts expect LG to ship as many as 4 million units this year.

The rapid growth is also expected to boost the company’s profitability, they said.

“The average sale price of OLED TVs is four times that of LCD (liquid crystal display) TVs. Given the higher prices, the growth rate of the premium product is surprising,” said an industry official.

Demand for OLED TVs that offer stunning picture quality has been growing rapidly as consumers, including gamers, are being attracted to large-size LED TVs as big-screen gaming gains popularity in the stay-at-home non-contact era.

OLED is highlighted by self-illuminating pixels that do not require a separate light source, allowing manufacturers to produce lightweight, thin and flexible display products, thus appealing to high-end consumers.

Omdia forecast that the global OLED TV market will grow from 5.8 million units this year to 6.7 million in 2022 and 7.5 million in 2023.

In the entire TV market, OLED TVs will account for more than 10% for the first time this year in value terms, compared with 5.9% in 2019, according to Omdia.

BENEFITS FROM STABLE PANEL SUPPLY

Medium- and small-size OLED TVs are also expected to grow at a fast pace with the rising demand for gaming TVs and extra TVs at homes.

Omdia said the 40-inch OLED TV segment is forecast to rise to 683,000 units this year from 167,000 units in 2020.

Analysts said LG’s position in the TV market should improve on growing OLED shipments as the company expands its market share while its global rivals are burdened by rising LCD panel prices and panel shortages.

LGE’s OLED TV business has benefited from stable panel supplies from its affiliate LG Display Co. as well as the shrinking price gap between LCD and OLED panels.

LG Display, the world's top manufacturer of OLED panels, supplied 4.5 million OLED TV panels to LG Electronics in 2020. It plans to nearly double the volume of such panels to 8 million units this year as its plant in Guangzhou, China went into operation in the second half of 2020.

LG’s 65-inch OLED TV, named the 65CXPUA, and three other OLED models recently received the highest scores in product ratings by US media outlet Consumer Reports.

Eight LG products were included in the top 10 OLED TVs rated by Consumer reports, while only two from Japan’s Sony Corp. made it to the list.

Write to Hyung-Suk Song at click@hankyung.com
In-Soo Nam edited this article.